There is a great joke about 2 boys sitting on a log beside the train track. Mommy called and said "boys... get off that log. A train will come along and suck you off"...............
Here comes the train. As this is written at 11:30am, the Dow is off 130 and the SPX is off 6.40 All the major indexes are off except the XLF, which is up 0.06% The charts of the IWM, the SPY, the QQQ, and the DIA all look about alike. They are breaking, or have broken both short term up trending and longer term up trending lines. Momentum has flipped both short term and intermediate to the Sell side. At least for the short term, the longs are making a decision to unload risk.
I really have no idea how low it can go on this move.....I have become a proponent of using trailing stops to establish sell points, rather than assuming I am smart enough to know where the bottom (or the top) is before I see it. This move could last 4 or 5 days, or it could last 4 or 5 weeks. I will let the market tell me when it triggers my stops. Then I will look around for another set-up that meets my criteria.
I have added sell stop prices at the right side of the blog. Don't forget to enter your Sell Stop GTC, and be ready to update those stop prices as this move unfolds.
More later this afternoon.
Best To Your Trading!
Bill
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